When preparing the Form 1065 and K-1's for 2nd homes owned by LLC's, which box on the K-1 should contain the partner's share of real estate taxes?

[info34]

On a return I am preparing, the partners share of real estate taxes is showing up in Part III Box 1 as Ordinary business income (loss).   Is this the correct location?

[PatriciaV · Accepted solution]

Yes, Real Estate Taxes for an LLC in the business of holding real estate for investment would be reported as a business expense included in Ordinary Business Income (Schedule K Box 1).